#TradingTypes101

Margin trading introduces leverage by allowing you to borrow funds from a broker to increase your trading position. While you still technically own the underlying asset, it serves as collateral for the loan. This amplification of capital can magnify both potential profits and losses. Margin trading carries significantly higher risk than spot trading, as adverse market movements can lead to "margin calls," requiring additional funds, or even liquidation of your position. Interest is also charged on borrowed funds

Margin trading introduces leverage by allowing you to borrow funds from a broker to increase your trading position. While you still technically own the underlying asset, it serves as collateral for the loan. This amplification of capital can magnify both potential profits and losses. Margin trading carries significantly higher risk than spot trading, as adverse market movements can lead to "margin calls," requiring additional funds, or even liquidation of your position. Interest is also charged on borrowed funds